Basell Reorganizes Lake Charles, Louisiana Chemical Complex

---

The following is an advisory by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Basell (Hoofddorp, The Netherlands) recently announced plans to restructure production assets at its Lake Charles, Louisiana Polyolefins Complex. Due to an oversupply of Polyethylene in the North American market, Basell has decided to close four production units at the site. Three units are currently in the process of closing with a forth unit, the Ultra-High Molecular Weight Polyethylene Unit, scheduled for closure and dismantling by August 2002.

The first three units will be mothballed with the potential for a later conversion to the production of Polypropylene. Accompanying these unit closures will be the elimination of 200 employees over the next 30 months. The company maintains that it will attempt to offer some of the 200 employees retirement packages to minimize the loss.

Additionally, Basell is negotiating with an undisclosed Private Energy Producer (PEP) for the construction of a 40 megawatt (MW) Cogeneration Unit at the complex. This new unit will utilize Solar Technology to supply power to the site, with additional energy being sold to the local grid.

Basell produces polypropylene, as well as polyethylene. As a leader in advanced polyolefin products, the company licenses polypropylene and polyethylene processes and catalysts. Basell supplies more than 120 countries with products manufactured in 18 countries. Basell's North American regional office is located in Wilmington, Delaware.